Analysts are failing to accept changing sentiment and reality and so are late to break bad news on Apple. MarketWatch's Mark Hulbert discusses on Markets Hub. Photo: Getty Images.

This transcript has been automatically generated and may not be 100% accurate.

... I ... almost he ... knew it the worst or cross incredibly incredibly successful in December I ... see that the bad news is never gonna stop for Apple even though ... I can sell the good returned thirteen billion dollars turnover thirty billion dollar profit last quarter what's gone of Discovery wasn't bad news keep on coming ... Mark Albers ... this hot off the presses mark over this column just ... went live on MarketWatch today ... yet the shares in the week and a journal low over the weekend as well yet ... look ... tell me that why does Apple had won one of the bad news keep following this company ... but to France and the story I was able to ... check in with an academic expert led to the Decatur Wall Street analysts and ... for a variety of senators that we can talk about that they operate in urban ... from Alice track of what those incentives are the behavior that results ... from these perverse incentives under which analysts offer ... is that it turned out pretty negative revision in its earnings forecast is more likely to be followed by ... yet another negative won the tender come in waves or momentum ... rather than randomly interspersed with goodness so it turns out that this is actually not ... I'm not a big surprise ... is that the earnings revision seemed really are all data were for Apple ever since last September ... and into two ERA to calm the issues are what you really describing his is even among analysts ... that there's no there's a herd mentality right they'll fall one another ... that makes them all will love him ... even if I've made the telling the one thing to make them reluctant to go file that were never ones over here ... whatever your answer that's what are the incentives under which they operate ... their safety in numbers I mean if somebody is really truly outside the consensus ... it I can make or break their career no one's going to accuse ... us last September but say in the twenty first when Apple did its all-time high everyone was revising their forecast upward at that time ... you didn't provide to our forecast upward immensely Apple continued going to the moment that would've looked really bad two-year institutional clients ... so that's one of the factors and so I think in the here and that they they iam apartment but analysts that great because ... it really has ... it's it's can be covered bonds ... and for investors to the ... storm to a point where sometimes ... I have the numbers you know what the numbers are even higher on analyzes the numbers ... maybe sometimes you gotta put the numbers aside ... and kind of ... goal with ... your intuition go with your head when Apple Hits seven hundred dollars ... he really seemed like ... it would be ... sooner rather than later before that got up and beat ... but nobody wanted to admit that no one to talk about that even though in retrospect it was obvious ... when EITC I get I of course I agree with it on the other hand ... the intuition was taking and at four hundred five hundred six hundred dollars a share so why play ... of course in retrospect every one of those up for you know that the actual top will look like it's an obvious why were we so stupid not to the ... seated at the time that they're quite content to attract several hundred advisors in the number of ... we're jumping off of off that ship as it is the market were not because ... they were saying exactly that their intuition says the stock he keep on going so ... we have to be careful opted not to be a Monday morning quarterback Matt ... it's also difficult ... to sit at the top ... this ... app on the thirteen billion dollars last quarter they make money they pay a dividend and this is not ... bad ... company ... it's just what were really talking about ... his timing and trying to guess what the other guy is going to pay for something ... contrived or a John wasn't a game of expectations and so it's not a has nothing to do with whether Apple is a good company were profitable that's beyond all shadow of a doubt the question is ... how profitable and how far you upward if the stock price can ago it gives ... you have too many expectations embedded into the price the numbers ... even a company as Astana is Apple's have a